g l a s s a n d c e r a m i c s
december 2008
indian glass and ceramics industry has several segments
this document focuses on glass, ceramic tiles and
sanitaryware segments. indian glass & ceramics sector
glass ceramics
• Flat glass
• container glass
• specialty glass
• Fiber glass
• tiles
• sanitaryware
• abrasives
• advanced ceramics
rapid growth in auto and construction sectors are the key drivers for high growth in sheet and float glass.
glass production in india is growing across segments
2003 2002
2001 125
127
million square metres
Production of sheet and Float glass
2005 2004
800 600
400
200 1,200
0
718 723
990
1,000 CAGR 67%
Production of Bottles and glassware
2005 2004 2003
2002 1,420
1,550 1,600
1,680
CAGR 5.5%
2002 2001 20
20.5
‘000 tonnes
Production of lab glassware
2005 2004 2003
20 15 10
5 35
0
21.9 20
25
25 30
CAGR 6%
Production of Fibre glass
2005 2004 2003
2002 57
60 65 63
exports of glass products have also been increasing
Upgradation in technology and replacement of traditional production methods have enabled higher exports.
glass exports
US$ million
0 50 100 150 200 250 300 350
139.31 2001-02
2002-03 174.13
2003-04 210.00
2004-05 218.23
2005-06 235.73
2006-07 307.60
CAGR 17%
Source: Ministry of Commerce, GoI – Export – Import Data Bank
2007-08
400 377.5.
exports of glass products have also been increasing
exports of glass items (2007-08)
n Bottles and Jars n Glass Fibres n Glass Beads n Float Glass, Sheets n Glass Bottles & Jars n Glass Fibers n Glass Bulbs & Tubes n Float glass n Glass Beads n Glass Blocks & Slabs n Others
Source: Ministry of Commerce, GoI – Export – Import Data Bank
country-wise exports (2007-08)
n USA n Italy n UAE
n China n Belgium n Poland
n Indonesia n Brazil n Australia
n UK n Turkey n Others
11%
9%
8%
8%
6%
4%
3%3%
3% 3%
2%
40%
25%
18%
11%
10%
10%
10%
3%
3%
3%3% 7%
demand for ceramic tiles has been booming
growth in building construction has driven the surge in demand for ceramic tiles.
2006-07 2007-08
2005-06 103
100 97
350 300 million Sq.mts
Production of ceramic tiles
0 50 100 150 200 250
290 220
207
Source: Department of Industrial Policy and Promotion, 2007-08, Cygnus Research
demand for ceramic tiles has been booming
india is the fifth largest producer of tiles in the world.
ceramic tiles segment-wise share
53%
35%
12%
n Floor tiles n Wall Tiles n Vitrified and Porcelain Tiles
Source: Department of Industrial Policy and Promotion, 2007-08, Cygnus Research
regionwise share of production of ceramic tiles - 2007-08
n americas n europe
n africa n asia
14%
29%
4%
53%
sanitaryware segment has grown rapidly in recent years
• construction in india has been booming, driving growth in sanitaryware
• sanitaryware penetration in india is low – about 30 percent – indicating the potential for sustained growth
construction industry - Projected investment growth
25 50 75 100 125 150 175 200
0 2006-08 2003-05
n Real Estate n Infrastructure n Industrial
112 48.9 21.3
98.8 37.8
US$ billion
Source: CRIS INFAC
9.1 116
87
‘000 tonnes
sanitaryware production in india
200
150 250 300
100
50 400
0 350
2007-08 2006-07 2005-06 2004-05 2003-04
190
252
366
Source: Department of Industrial Policy and Promotion, 2007-08
Both exports and imports of sanitaryware are increasing
17.9 14.1
US$ million
exports of sanitaryware
20 15
10
5 30
0 2007-08 2006-07 2005-06 2004-05 2003-04
18.7 20.7
23.91
Source: Ministry of Commerce, GoI – Export – Import Data Bank
CAGR 14%
Key success factors in the indian glass and ceramic industry
Technological capability
• to meet the needs of demanding user segments
• increasing alignment with global standards
• increasing need for product customisation
Energy efficient manufacturing
• energy constitutes nearly 30 per cent of manufacturing costs
Supply chain management
• to cater to a geographically spread out market
• User segments moving towards Just in time (Jit) supplies
Branding
• end customers are becoming brand conscious
• need for differentiation in a competitive market
Key success factors in the indian glass and ceramic industry
case study of a successful player in india – saint gobain
• the saint gobain group entered india in 1996 by acquiring a majority stake in grindwell norton.
• Four of its divisions are operating in india, through six companies
• saint-gobain glass india ltd. is saint-gobain’s largest greenfield venture in india
• it is located at sriperumbudur near chennai, tamil nadu, with an initial investment of Us$ 125 million
• the plant manufactures float glass for mirrors, architectural, automotive segments and other applications (solar panels, photo framing, etc)
Factors for success include:
• strong local management, commitment of resources
• investing in people development to overcome lack of skills
• Vertical integration and development of quality supplier base
• state of the art technology, strong brand building and wide distribution network
• leveraging indian operations for exports
case of a successful player in india – saint gobain
Profile of other Key Players
Asahi India (AIS)
• ais is an integrated glass manufacturer that produces automotive safety glass, architectural processed glass, float glass and glass products
• the company was formed in 1987, and has since recorded steady growth
• turnover in Fy 2007 was Us$ 225 million
• the company has three strategic business units – ais auto glass, ais Float glass and ais glass solutions
• it is the largest supplier of automotive safety glass for the indian auto industry, accounting for nearly
81 per cent of the requirements of the passenger car industry
Profile of other Players
Hindustan Sanitaryware
• hindustan sanitaryware is the flagship company of the somany group, and was set up in 1962 in collaboration with twyfords, UK
• its brand, hindware, accounts for about one third of the indian sanitaryware market
• the company exports about 10 per cent of its output to countries across the world, including australia, UK, america, middle east countries and africa
• the group’s other companies in the sector include agi glaspac, which manufactures high quality
glassware, and hindware home retail Private limited, which focuses on home interiors retail
Profile of Key Players
Parryware Roca Pvt Ltd.
• the company is a 50:50 JV between eid Parry, a murugappa group company based out of chennai, and roca sanitario of spain
• the company is headquartered in chennai and
manufactures a range of bathroom products such as vitreous sanitaryware, seat covers, cisterns, bathtubs, electronic flushing systems and sinks
• the company is the biggest sanitaryware player in india and was ranked tenth in the world in 2007 (ceramics World)
• it has a wide distribution network of over 100 showrooms, through which it not only sells and services sanitaryware products, but also promotes
H&R Johnson
• one of india’s foremost manufacturers of ceramic tiles, the company produces wall and floor tiles for a range of interior, exterior and industrial applications
• the company has plants in four locations – dewas (madhya Pradesh), Pen (maharashtra), Kunigal (Karnataka) and Karaikal (Pondicherry)
• turnover of Us$ 205 million (inr 9260 million) in 2006-07
• the company plans to increase penetration in smaller towns and rural markets to fuel growth
Profile of Key Players
this presentation has been prepared jointly by the india Brand equity Foundation (“iBeF”) and KPmg advisory services Private limited (“author”).
all rights reserved. all copyright in this presentation and related works is owned by iBeF and the author.
the same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of iBeF.
this presentation is for information purposes only.
While due care has been taken during the compilation
disclaimer
of this presentation to ensure that the information is accurate to the best of the author’s and iBeF’s knowledge and belief, the content is not to be
construed in any manner whatsoever as a substitute for professional advice.
the author and iBeF neither recommend or endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of
decisions taken as a result of any reliance placed in this presentation.
neither the author nor iBeF shall be liable for any
direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this
